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Basic Question 2 of 6
The measure of risk in an efficient frontier is ______.
B. standard deviation of returns
C. beta
A. specific risk
B. standard deviation of returns
C. beta
User Contributed Comments 3
| User | Comment |
|---|---|
| danlan | It is total risk not only beta |
| americade | beta is only important to an individual portfolio to be added that would be considered to be added only if it had alpha, it's std dev could be diversified away to a point. |
| thekobe | in the CML aproach is the std dev what matters, in the SML aproach is Beta |
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Edward Liu
Learning Outcome Statements
describe and interpret the minimum-variance and efficient frontiers of risky assets and the global minimum-variance portfolio
CFA® 2025 Level I Curriculum, Volume 2, Module 1.